Criticism of the World Bank centered on grand projects such as huge dams which cause massive resettlement of populations and widespread environmental damage without achieving economic growth or reducing poverty.
An independent group headed by Bradford Morse that investigated the Narmada dam project in India found deficiencies in the bank's appraisal of the project, in the borrower's implementation and the bank's supervision (1992).
Bank president Lewis Preston said the criticism was justified but the bank went ahead with the project after requiring that India produce detailed plans for resettlement and environmental studies.
India asked for cancellation of its remaining loans rather than accepting the bank's new requirements (1993).
The Narmada disaster led to establishment of a bank inspection panel and extensive self-study within the bank to achieve improved efficiency and its goals of economic growth, protection of the environment and reduction of poverty in developing nations.
Britain's Oxfam and a task force under World Bank veteran Willi Wapenhans concentrated on World Bank failures in Africa and South America (1992).
Specific criticism was leveled at the bank's encouraging production of commodities that had already saturated the world market, using loan volume as a measurement of success, imposing pet projects on borrowers rather than responding to their needs, and failure to monitor performance of often inefficient and corrupt governments.
By the end of 1994 the World Bank was under continued attack and bank seniors debated the future of their organization.
